STL(SZ:002648)2024-10-18 06:03Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 25.06 based on a 14x PE ratio for the 2024 EPS of RMB 1.79 [4][11]. Core Insights - In H1 2024, the company achieved revenue of RMB 19.40 billion, a YoY decrease of 4.59%, while net profit attributable to shareholders was RMB 2.06 billion, reflecting a YoY increase of 12.51% [3][9]. - The successful launch of the 800,000-ton multi-carbon alcohol project has completed the C3 industry chain loop, enhancing the company's core business foundations and addressing upstream and downstream raw material matching issues [3][9]. - The α-olefin comprehensive utilization project has commenced construction with a planned investment of RMB 26.60 billion, aiming to create future growth drivers by extending into high-end polyolefins and achieving carbon reduction goals [3][10]. - The company has increased its R&D investment to RMB 795 million in H1 2024, a YoY increase of 10.25%, and has applied for 115 patents, with 63 granted [3][10]. Financial Summary - The company forecasts net profits attributable to shareholders of RMB 6.01 billion, RMB 8.03 billion, and RMB 9.02 billion for 2024, 2025, and 2026 respectively, with EPS projected at RMB 1.79, RMB 2.38, and RMB 2.68 [4][11]. - Revenue is expected to grow from RMB 41.49 billion in 2023 to RMB 53.62 billion in 2026, with a CAGR of approximately 6.9% [5][7]. - The gross margin is projected to improve from 19.8% in 2023 to 28.2% in 2026, indicating enhanced profitability [5][7].